Ezel / IRS Rulings / 200930045

CCA 200930045: Non-member may not be designated as tax matters partner

Number
200930045
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Tax Matters Partner
Topics
Procedure, penalties, and administration
Code sections
§ 6231
Ruling dated
June 3, 2009
Publicly released
July 24, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The Office of Chief Counsel advised that an operating agreement’s designation of a non-member as tax matters partner was invalid. It said the designation on the return appeared proper because it designated a member. If no member was a manager, all members were treated as member-managers eligible for designation under the cited regulation.

Ruling snapshot

  • Question: Who may be designated as tax matters partner when the operating agreement names a non-member?
  • Outcome: Advice given
  • Key authorities: IRC § 6231(a)(7); Treas. Reg. § 301.6231(a)(7)-2(b)(3)

Full text (IRS public release)

ID: CCA_2009060313295837 Number: 200930045
Release Date: 7/24/2009
Office: --------------
UILC: 6231.07-00

From: -------------------
Sent: Wednesday, June 03, 2009 1:30:00 PM
To: -----------------
Cc: -----------
Subject: RE: [-------------------------------]

The operating agreement designates a non-member as TMP. So its invalid. The designation on the return thus appears proper since it designates a member. If no member is a manager, all members are treated as member-managers eligible to be designated. Treas. Reg. 301.6231(a)(7)-2(b)(3)(last sentence). It appears that none of the 4 members is a manager so that all would be eligible.

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